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Second Ballot Voting Procedure in respect of proposed Changes in the Investment Policy and Name of the STXNDQ
SATRIX COLLECTIVE INVESTMENT SCHEME
SATRIX NASDAQ 100 FEEDER PORTFOLIO
JSE Code: STXNDQ
ISIN: ZAE000256301
("SATRIXNDQ or STXNDQ")
A portfolio in the Satrix Collective Investment Scheme, registered as
such in terms of the Collective Investment Schemes Control Act, 45 of
2002
Second Ballot Voting Procedure in respect of proposed Changes in the
Investment Policy and Name of the Satrix Nasdaq 100 Feeder Portfolio
This letter is important and requires your immediate attention.
The first ballot which closed on 27 September 2024 was unsuccessful
as it did not achieve the minimum number of votes required. This was
mainly due to the low response rate. Those votes received in favour
far exceeded those rejected the proposed changes. To effect the
proposed changes to the portfolio, a second ballot is now required.
The purpose of this letter is to inform you of the proposed
changes to the investment policy of the Satrix Nasdaq 100 Feeder
Portfolio and to provide you with sufficient information to vote on
this proposal.
This ballot amending the investment policy and structure is conducted
at the request of Satrix Managers (RF) (Pty) Ltd (Satrix) (FSP no
15658).
The reason for the ballot is that Satrix wants to change the structure
of the above portfolio from a feeder portfolio to a standard
portfolio. This portfolio was launched in April 2018 and has, since
inception, held approximately 100% of its assets in the iShares Nasdaq
100 UCITS ETF, which is an Irish-domiciled UCITS (Undertakings for
Collective Investment in Transferable Securities).
After much consideration, we have concluded that it would be
beneficial to unitholders to convert this feeder portfolio to a
standard portfolio. These benefits include:
• The Satrix Nasdaq 100 Feeder Portfolio has achieved sufficient
scale (R5.29 billion as at 30 April 2024) to efficiently be able
to track underlying securities directly.
• South Africa has a double taxation agreement with the United States
of America, which allows a 15% withholding tax on dividends as
opposed to the standard 30% withholding tax rate. By holding the
US equities directly, the exchange-traded fund (ETF) can take
advantage of the lower withholding tax rate, thereby passing on
enhanced performance and efficient tracking to clients.
• The bulk of the margin earned with the current feeder ETF is earned
and retained in Ireland by the current underlying ETF manager,
thereby limiting our ability to price the fund competitively in
South Africa where it is distributed. The intention of the
restructure is to reduce the total expense ratio of the fund.
The transition of the portfolio from a feeder portfolio to a standard
portfolio will involve an in-specie transfer of the assets into the
standard portfolio. This will be done over a period of time (in line
with settlement cycles in the applicable market) deemed suitable by
the investment manager.
The name of the portfolio will change from:
Satrix Nasdaq 100 Feeder Portfolio
to
Satrix Nasdaq 100 ETF
The table below lists the current investment policy, as well as the
proposed changes to the new investment policy. The only change is
that the feeder fund will change to a standard fund, and will
therefore hold underlying securities directly, rather than via a
UCITS.
Current Investment Policy New Investment Policy Impact on Investor
3.1 The investment policy of the 3.1 The objective of the Satrix There is no negative
Portfolio shall be to track the Nasdaq 100 ETF is to provide an impact on the
Nasdaq 100 Index (hereinafter investment vehicle for investors within the
referred to as "the Index") as investors wishing to track the Satrix Nasdaq 100
closely as possible, by movement of the Nasdaq 100 Feeder Portfolio as a
investing in iShares Nasdaq 100 Index by investing in result of the
UCITS ETF securities. securities of global companies implementation of the
which are primarily proposed restructure.
3.2 The portfolio will apart from constituents of the Nasdaq 100
assets in liquid form, and Index.
financial instruments for the
exclusive purpose of hedging 3.2 The portfolio shall seek to
exchange rate risks - invest in achieve this objective by
participatory interests of the investing as far as is possible
iShares Nasdaq 100 UCITS ETF and practicable in the
(the"Fund") established under constituents of the Nasdaq 100
the iShares VII Public Limited Index as well as assets in
Company approved by the Central liquid form and financial
Bank of Ireland in August 2011. instruments for efficient
The investment objective of the portfolio management purposes.
Fund is to deliver the net total The manager intends to use
return performance of the physical tracking techniques
Benchmark Index (being the such as full replication and,
Nasdaq 100), less the fees and where necessary, portfolio
expenses of the Fund. In order optimisation in order to
to achieve this investment achieve a similar return to the
objective, the investment policy Index. It is therefore expected
of the Fund is to invest in a that at most times the
portfolio of equity securities portfolio will hold each and
that as far as possible and every underlying constituent of
practicable consists of the the Index in the exact same
component securities of the proportion as their weightings
Nasdaq 100 Index. The Nasdaq 100 in the Index. However, from
measures the performance of 100 time to time the portfolio may
of the largest US and not hold all constituents of
international non-financial the Index. The combination of
stocks listed on the Nasdaq shares will enable the Manager
Stock Market which comply with to track the performance of the
size and liquidity criteria. The Nasdaq 100 Index.
Fund intends to replicate the
constituents of the Benchmark 3.3 The Fund endeavours to
Index by holding all the replicate the price return
securities comprising the performance of the Nasdaq 100
Benchmark Index in a similar Index in South African Rand
proportion to their weightings (ZAR) (un-hedged). When the
in the Benchmark Index. Fund is changed it will be
holding the securities directly
3.3 The Trustee shall ensure that and will therefore distribute
the investment policy set out in any income and dividends less
the preceding clauses are fund expenses.
adhered to; provided that
nothing contained in this clause 3.4 The Trustee shall ensure
shall preclude the Manager from that the investment policy set
varying the proportions of out in the preceding clauses
securities in terms of changing are adhered to; provided that
economic factors or market nothing contained in this
conditions or from retaining clause shall preclude the
cash in the portfolio and/or Manager from varying the
placing cash on deposit. proportions of securities in
terms of changing economic
factors or market conditions or
from retaining cash in the
portfolio and/or placing cash
on deposit.
Current Fund Name New Fund Name Impact on Investor
Satrix Nasdaq 100 Feeder Satrix Nasdaq 100 ETF No impact
Portfolio
Current Fund Benchmark New Fund Benchmark Impact on Investor
Nasdaq 100 Index Nasdaq 100 Index No change to benchmark
Current TER New TER Impact on Investor
48 bps 42 bps The restructure will
reduce the TER of the
fund.
Distribution Methodology Distribution Methodology Impact on Investor
Total Return Distributing Change in distribution
methodology i.e change
from total return to
distributing provides
the investor the
option to receive
the physical
distribution cash or
reinvest.
Action required from investors
1. Please read this circular on the proposed change to the portfolio, your
rights as an investor and the impact this will have on your investment.
2. A Ballot Form enclosed, is available to all investors, brokers and CSDPs
for completion of the ballot vote.
3. The various Brokers/CSDPs will then submit the ballot responses via email
to our external auditors, KPMG, at satrixballotSTXNDQ1@kpmg.co.za on or
before 4 December 2024. Alternatively, the Ballot Form may be emailed
directly to KPMG at satrixballotSTXNDQ1@kpmg.co.za by 4 December 2024.
4. Please do not include any other instructions regarding your holdings with
your ballot form, e.g. requests for purchases, switching instructions,
etc. Your ballot form will go directly to our auditors and, should such
instructions be sent to the auditors, we cannot guarantee that any
instruction subsequent to the commencement of the ballot process will be
effected.
5. If you are no longer invested in this portfolio, no action is required.
Approval and Commencements
Subject to the ballot voting procedure being successful and approval
by the Financial Sector Conduct Authority ("the Authority") of
Collective Investment Schemes, the change in the Investment Policy
and name of the Portfolio will be effected.
Timelines for the implementation of the amendments on Satrix NASDAQ 100
Feeder Portfolio ballot:
Date ACTION
Receive investor holdings per STRATE Register (as 18
Tuesday, 22 October 2024 October 2024)
Thursday, 24 October 2024 Release of announcement on JSE SENS
Final date of response to ballot letter (30 business
Wednesday, 4 December 2024 days after distribution)
Tuesday, 10 December 2024 Satrix submit audit report to FSCA
Wednesday, 18 December FSCA approve audit report
2024
Tuesday, 24 December 2024 Results of the ballot announcement on SENS
Monday, 6 January 2025 FSCA approve supplemental deed
Monday, 20 January 2025 Last day to trade in the old name
Effective date of change in investment policy and
portfolio name and commencement of trade under the
Tuesday, 21 January 2025 new name (Satrix Nasdaq 100 ETF)
Thursday, 23 January 2025 Record date
Shareholder accounts at the CSDP's/Broker's updated
Friday, 24 January 2025 with the new name
Notes:
The long name will change.
The short name, ISIN and alpha code will remain the same.
The instrument will retain its historical trading and reference data.
The Effect on You as Investor
The proposed changes to this fund will not change the nature of the
underlying strategy. The change will convert the feeder ETF to a
standard ETF, and will therefore hold underlying securities directly,
rather than via a UCITS ETF.
Effective Date of Change
The effective date of the proposed changes in the investment policy
and the name of the portfolio will be 21 January 2025, provided that
the necessary consent is obtained from investors and the Financial
Sector Conduct Authority ("FSCA").
Charges, Performance and Unit Pricing
Investors will not be liable for the payment of any additional fees,
charges, taxes or brokerage as a result of the investment policy and
name change.
Special Distribution
No special distributions will be effected nor applicable.
Your Rights as an Investor
The rights of investors are firmly entrenched in the Act. In terms of
Section 98 of CISCA, as read with Clause 59 of the Deed of the Satrix
Collective Investment Scheme in Securities, the Registrar of
Collective Investment Schemes requires that:
• All investors are notified in writing of any proposed material
changes to the collective investment schemes and portfolios in
which they hold units.
• All investors are balloted in order for them to vote on the
proposed changes.
Please note that, in terms of the Act, the Registrar will not consent
to the changes to the portfolio unless satisfied that the changes will
not be detrimental to the interests of any investor. Furthermore,
investor votes received in the previous ballot does not count towards
this ballot and investors are therefore required to vote again.
Due to the re-ballot of the Satrix Nasdaq 100 Feeder Portfolio, there
is no required value of investors which must respond, however, those
that have responded excluding the manager must respond in writing of
which the majority must agree to the amendment.
If you choose not to switch or sell your funds prior to the effective
date of the change of investment structure as set out in this letter
(if approved by investors), the amended investment policy will
automatically apply to your investment.
Should you require further information on the proposed change, or
should you wish to exercise your right to switch or sell any of your
investments, please contact Satrix Managers on 0860 111401, or You
can also send an email to info@satrix.co.za.
24 October 2024
JSE Sponsor
Vunani Sponsors
Date: 24-10-2024 12:06:00
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